Unite: 'Government's welfare reforms put most vulnerable at risk'

The most vulnerable in society must not lose out in the new proposed welfare reform package announced by the Government today, Unite, the largest union in the country, has warned.
 
Unite said that the proposals unveiled by the Work and Pensions Secretary, Iain Duncan Smith (pictured) merited consideration, but it had serious concerns how these plans would work given the enormous job losses that will flow from this autumn’s Comprehensive Spending Review (CSR). 

Unite Assistant General Secretary for Public Services, Gail Cartmail said: "Iain Duncan Smith is arguing that his reforms will encourage people back to work, yet at the same time the government is scrapping the Future Jobs Fund  which would have provided 80,000 jobs for young people.

"Costing for the reforms is not being announced today. The government estimates it will cost £3 billion to set up the new universal benefit, while former Labour minister Angela Eagle has said that the Department Works and Pensions during the last government costed the outline proposals at £7 billion.

"Either way for the government to afford to do this will inevitably mean that other benefits not directly related to the unemployed will have to be cut, given the hardline message coming from George Osborne at the Treasury.

"The other point to be made is where the jobs are coming from. Most economic forecasts are indicating that UK growth in the next two years is likely, at best, to remain low and that means the likelihood of new jobs being created without the impetus of state spending is negligible.

"Add to that the encouragement for people to work longer and you have a cocktail of measures which do not mix well and leave a sour taste in the mouths of the most vulnerable.

"This government said it wanted to be fair and reduce inequality. One swift and effective way would be to increase the national minimum wage to a living wage, as recommended by the Professor Hill in the National Equality Panel's landmark report earlier this year.

"Also, some of the lowest paid women work for local councils and in schools, but they have been stuck on a pay freeze with inflation running at 5% and increased VAT due to kick in next January.

"Another quick win for Iain Duncan Smith in tackling the problem that blights Britain - the working poor - would be to insist that councils lift the pay freeze."